The value of transactions done via Point of Sale Terminals, PoS, has hit an all time yearly record of N18 trillion. This surge, according to data obtained from the Nigeria Inter-Bank Settlement System (NIBSS), indicates a 69% increase when compared with the value of PoS transactions in 2023 at N10.7 trillion.
Also, the surge has been triggered by the lingering cash scarcity at ATM points, withdrawal limits placed in line with the CBN’s cashless policy and the deployment of more PoS devices by Fintech companies.
The availability of PoS terminals has increased access to banking services especially for people in remote areas, leading to an increase in the number of transactions by 8% year-on-year to 1.5 billion in 2024 compared with the 1.4 billion recorded in the previous year.
In addition, PoS terminals have filled a huge gap created by the constant non availability of cash in Nigerian banks, giving Nigerians access to a seamless and stress free transaction. This comes as Nigeria recorded a surge in volume of electronic payment transaction in 2024, indicating the extent to which the country is moving from conventional banking options.
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However, transactions done via PoS terminals have their own challenges especially the charges attached to deposits and withdrawals. In fact, the current fees associated with a standard PoS transaction have risen significantly, with charges reaching as high as N500 for a withdrawal of N5,000 in some areas. This represents a stark increase from the previous norm of N100 or N200 just a few months ago.
In response to complaints about the charges, operators contend that these high fees are indicative of the increased costs associated with cash acquisition, as they face challenges in withdrawing cash from banks and are forced to obtain it through alternative channels, including purchasing from petrol stations.
